IRS adjusts 2015 tax numbers

The tax law requires that certain tax numbers be adjusted for inflation each year. Because inflation was minimal in 2014, most of these numbers are unchanged or change only slightly for 2015. Here are some of the 2015 tax numbers you’ll need to use in this year’s tax planning.

The standard mileage rate for business driving increases from 56¢ per mile to 57.5¢ per mile, effective January 1, 2015. The rate for medical and moving mileage decreases from 23.5¢ per mile to 23¢ per mile. The general rate for charitable driving remains at 14¢ per mile.

The maximum earnings subject to social security tax in 2015 is $118,500. The earnings limit for those under full retirement age is $15,720. For those at full retirement age, there is no earnings limit.

The “nanny tax” threshold remains at $1,900 for 2015. If you pay household employees $1,900 or more during the year, you’re responsible for payroll taxes.

The “kiddie tax” threshold increases from $2,000 to $2,100 for 2015. If your child under age 19 (under age 24 for students) has more than $2,100 of unearned income this year (e.g., dividends and interest income), the excess could be taxed at your highest rate.

The maximum individual retirement account (IRA) contribution you can make in 2015 remains unchanged at $5,500 if you’re under age 50 and at $6,500 if you are 50 or older.

The maximum amount of wages employees can put into a 401(k) plan increases from $17,500 to $18,000. The 2015 maximum allowed for SIMPLE plans is $12,500. If you are 50 or older, you can contribute up to $24,000 to a 401(k) and $15,500 to a SIMPLE plan.

For 2015, the maximum amount that can be contributed to a health savings account (HSA) increases to $3,350 for individuals and $6,650 for families.

Tax legislation could change these and other important tax numbers at any time. Before making important business and personal financial decisions this year, contact us for the latest rules.